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Exidiopsis effusa
VT is usually under a heavy dumping of snow, but this year it was warm and we were able to see a new form of mycelium Fungi. Walking through the forest we saw a number of hard wood branches with a white fluffy stuff. The white fungi was growing on the wood and under the bark. I touched the middle of the white stuff and pulled out the middle on image one. It felt and looked like the fluffy seed tops of milkweed. Delicate, about 1 to 2 inches in height. A fine mass forms the mycelium of the mushrooms usually growing underground and under snow.
The vegetative body grows underground and on dead hardwood sticks.